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FTX owes nearly $3.1B to creditors, lawyers warn about “Enormous Exercise”

1 min read Original Link

Investors are curious as to when they will get their money from the now-defunct cryptocurrency exchange FTX. Unfortunately, insolvency attorneys have cautioned that it might take “decades.”

The cryptocurrency exchange reportedly owes its 50 largest creditors close to $3.1 billion. Additionally, it has applied for bankruptcy court protection in the United States.

Without naming them, the exchange stated that it owes its top ten creditors approximately $1.45 billion in a court filing on Saturday. The process of “realizing” the cryptocurrency assets and determining how to divide the monies will be an “enormous exercise” in the liquidation process, according to insolvency lawyer Stephen Earl, partner at Co Cordis in Australia.

The procedure might take years, if not “decades,” to complete. He clarified that cross-border insolvency issues cause such complications, as there are multiple competing jurisdictions.

(by Suzuki Shillsalot)

# FTX

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